Rupee down by 22 paise against US dollar

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The Indian rupee was down by 22 paise to Rs 49.16 per US dollar in early trade on Tuesday, wiping out gains registered in the past two sessions on fresh demand for the American currency from banks and importers in view of dollar firmness in overseas markets.

The rupee resumed lower at Rs 49.08/09 per dollar on the interbank foreign exchange, as against its previous close of Rs 48.94/95 per dollar, and dropped further to Rs 49.16 per dollar before quoting at Rs 49.13/14 per dollar at 1030 hours.

The domestic currency moved in a range between Rs 49.08 and Rs 49.16 per dollar during morning deals.

Fresh dollar demand from banks and importers in view of dollar firmness in global markets mainly affected the rupee value against the dollar, a forex dealer said.

In the New York market, the dollar rose versus the euro and most other major currencies on Monday after German chancellor Angela Merkel's spokesman played down expectations that European leaders will finalise a comprehensive solution to the euro zone debt crisis at a summit meeting.